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Strong Buy: 8.3% Yield Baby Bond From NuStar, Offers Improving Fundamentals

Published Thu, 17 Oct 2019 08:35:00 -0400 on Seeking Alpha

Co-produced with Beyond Saving and PendragonY
At High Dividend Opportunities, we set out in 2019 with a few specific goals. We wanted to increase our exposure to fixed-income investments, we wanted to lock in high-yields for an extended period of time, and we wanted exposure to industries that are counter-cyclical and/or recession-resistant.
All year long, we have been recommending preferred shares, bonds, and baby bonds. With treasury rates continuing to decline, this strategy has provided us an opportunity to achieve high yields and decreased volatility in our portfolio. Our preferred portfolio is currently yielding close to 7% and includes over 50 recommendations with "buy under prices". Also our bond and "baby bond" portfolio yields 6.7% and offers high yield with lower price volatility. Our yield on capital is higher than that due to many of our investments rising in price since we have made them due to interest rate declines across the globe.
Is it too late to invest in preferred stocks and bonds? Definitely not in our opinion. Interest rate declines are set to continue, lower for longer. Our aim is to identify opportunistic buys in the fixed income space and recommend them to our members. One sector that continues to have significant downward pressure on prices is the energy sector. This is a sector where the market has panicked. Even as the fundamentals have been stabilizing and the future outlook is brighter, share prices have not yet recovered.
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Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VERMILION ENERGY 15.98   9.3 1.72 2.09 13.10
GLOBAL PARTNERS 19.17   12.4 1.54 2.06 10.73
SUNOCO LP 31.35   20.8 1.51 3.30 10.51

VERMILION ENERGY - VET
VERMILION ENERGY - VET  


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